Promising signs are emerging to indicate the Chinese live export market, known as the ‘holy grail’ for Australian cattle producers, is close to opening.

Representatives from the Department of Agriculture and Food Western Australia (DAFWA) are travelling to China next week to further discussions about the trade, which rests on establishing a viable animal health protocol.

Last October, WA Premier Colin Barnett signed a memorandum of understanding with Zhejiang, the state's sister province in eastern China.

Back then, Mr Barnett told ABC Rural this ground-breaking trade deal could eventually see hundreds of thousands of live cattle being exported to China.

Five months down the track, Premier Barnett says he’s even closer to an agreement.

“The biggest issue is the infrastructure isn’t in place in China but the Chinese will build state-of-the art modern abattoirs and meet high standards of animal welfare.

"That will be done in conjunction with Chinese and Australian interests," he said.

“I have no doubt that the development of a new live cattle, and maybe even live sheep, export industry into China will meet the highest standards.

“Given their massive population and rising income levels there’s a lot of blue sky in this for Western Australian beef producers.

“Any deal in China is going to be a big deal.”

Premier Barnett warns the export of animals from WA to China is dependent on the conditions laid down by Beijing.

“We do need to get the support of government, with China and Australia, in place and the rules set down clearly,” he said.

There's lots of interest and talk about the rich export channel in China for live cattle exports, but industry analysts say there are still significant barriers in the way, based on there not being a path in place for animals to go in.

Livestock and agriculture consultant, Steve Meerwald, is involved in a project with DAFWA to clear the way for the live export of slaughter cattle to China.

“China has the potential to be as large as any market we currently have and could be even bigger than a combination of them all,” he said.

“It is that large.”

ABC Rural understands mining magnate Andrew Forrest is pursuing a deal to open live cattle exports to China.

A spokesperson for the billionaire says no deal has been signed yet and she wouldn’t confirm whether he is joining forces with agribusiness, Elders.

Mr Meerwald says regardless of what Mr Forrest’s plans are, it won't happen unless there's approval on a political level.

“There is no animal health protocol, which is a Canberra-Beijing discussion.

“The primary concern is to develop a protocol which will enable as many cattle as possible from as many areas in Australia as possible to be eligible to China in the first place,” he said.